MIRA INFORM REPORT
|
Report No. : |
337708 |
|
Report Date : |
21.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
KAWASAKI HEAVY INDUSTRIES LTD |
|
|
|
|
Registered Office : |
Kobe Crystal Tower, 1-1-3 Higashi-Kawasakicho Chuoku Kobe 560-8680 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2015 |
|
|
|
|
Date of Incorporation : |
Oct., 1896 |
|
|
|
|
Com. Reg. No.: |
1400-01-003719 (Kobe-Chuoku) |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Manufacturer of Heavy Electric Machinery & Engineering Works. |
|
|
|
|
No. of Employees : |
35,471 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
Yen 27,322.9 Million |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
JAPAN - ECONOMIC OVERVIEW
In the years following World War II, government-industry
cooperation, a strong work ethic, mastery of high technology, and a comparatively
small defense allocation (1% of GDP) helped Japan develop an advanced economy.
Two notable characteristics of the post-war economy were the close interlocking
structures of manufacturers, suppliers, and distributors, known as keiretsu,
and the guarantee of lifetime employment for a substantial portion of the urban
labor force. Both features are now eroding under the dual pressures of global
competition and domestic demographic change. Scarce in many natural resources,
Japan has long been dependent on imported raw materials. Since the complete
shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster
in 2011, Japan's industrial sector has become even more dependent than it was
previously on imported fossil fuels. A small agricultural sector is highly
subsidized and protected, with crop yields among the highest in the world.
While self-sufficient in rice production, Japan imports about 60% of its food
on a caloric basis. For three decades, overall real economic growth had been
impressive - a 10% average in the 1960s, a 5% average in the 1970s, and a 4%
average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%,
largely because of the aftereffects of inefficient investment and an asset
price bubble in the late 1980s that required a protracted period of time for
firms to reduce excess debt, capital, and labor. Modest economic growth
continued after 2000, but the economy has fallen into recession four times
since 2008. Government stimulus spending helped the economy recover in late
2009 and 2010, but the economy contracted again in 2011 as the massive 9.0
magnitude earthquake and the ensuing tsunami in March of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out
nuclear power with a new policy of seeking to restart nuclear power plants that
meet strict new safety standards, and emphasizing nuclear energy’s importance
as a base-load electricity source. Japan joined the Trans-Pacific Partnership
(TPP) negotiations in 2013, a pact that would open Japan's economy to increased
foreign competition and create new export opportunities for Japanese
businesses. Measured on a purchasing power parity (PPP) basis that adjusts for
price differences, Japan in 2014 stood as the fourth-largest economy in the
world after first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose major long-term challenges for the economy.
|
Source
: CIA |
Company
Name and Address
KAWASAKI HEAVY INDUSTRIES LTD
REGD NAME: Kawasaki
Jyukogyo KK
MAIN OFFICE: Kobe
Crystal Tower, 1-1-3 Higashi-Kawasakicho Chuoku Kobe 560-8680 JAPAN
Tel: 078-371-9530 Fax: 078-371-9566
E-Mail Address: (Through the URL to each division)
ACTIVITIES
Mfg of heavy
electric machinery & engineering works
BRANCHES
Tokyo, Sapporo,
Sendai, Hyogo, Akashi, other (Tot 15)
OVERSEAS
China (2), Taipei, Seoul, Jakarta, Singapore, Kuala Lumpur, Bangkok, USA (2), Brazil, UK, Netherlands, other
(Subsidiaries): USA (6), Canada, Brazil (2), UK (3), Germany (4), Netherlands (3), Korea, China (4, including Hong Kong), Thailand, Philippines, Indonesia, Australia, other
FACTORIES
Kobe, Akashi,
Hyogo, Gifu, other (Tot 11)
OVERSEAS
USA (4), Brazil,
UK, China (2), Philippines, Indonesia, Thailand
CHIEF
EXEC
SHIGERU MARUYAMA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,486,123 M
PAYMENTSREGULAR CAPITAL Yen 104,484 M
TREND STEADY WORTH Yen 447,957 M
STARTED 1896 EMPLOYES 35,471
COMMENT
MFR OF HEAVY ELECTRIC MACHINERY & ENGINEERING WORKS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 27,322.9 MILLION, 30 DAYS NORMAL TERMS.
Unit: In Million Yen
Forecast figures for the 31/03/2016 fiscal term
HIGHLIGHTS
The subject
company was established originally in 1878 by Shozo Kawasaki for mfg
Western-style oceangoing steel ships, on his account, and was incorporated in
1986. This is a comprehensive heavy
electric machinery mfg & engineering company, with strength in railroad
rolling stocks, motorcycles and medium-sized gas turbines. Also major shipbuilder. Since incorporated spun off various
divisions, such as steel, transportation, etc into independent firms, which now
constitute its main group firms.
Intra-company Organizations: Ship &
Offshore Structure Company, Rolling Stock Company, Aerospace Company, Gas
Turbine & machinery Company, Plants & Infrastructure Company,
Motorcycles & Engine Company, Precision Machinery Company.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 1,486,123 million, a 7.2% up from Yen 1,385,482 million in the previous term. Aerospace business-related earnings rose
sharply, helped by lower Yen.
Shipbuilding business became profitable.
The recurring profit was posted at Yen 84,288 million and the net profit
at Yen 51,639 million, respectively, compared with Yen 60,605 million recurring
profit and Yen 38,601 million net profit, respectively, a year ago.
For the current term
ending Mar 2016 the recurring profit is projected at Yen 100,000 million and
the net profit at Yen 69,000 million, respectively, on an 11.0% rise in
turnover, to Yen 1,650,000 million.
Production of fuselage segment and earnings for Boeing 787 will continue
to drive up sales and earnings.
Operating rate of railway rollingstock plant in the US will rise. Sales of industrial robots will expand.
The financial situation is considered FAIR to GOOD and good for ORDINARY
business engagements. Max credit limit is estimated at Yen 27,322.9 million, on
30 days normal terms.
REGISTRATION
Date Registered: Oct 1986
Regd No.:
1400-01-003719
(Kobe-Chuoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 3,360
million shares
Issued:
1,670,805,320 shares
Sum: Yen
104,484 million
Major shareholders
(%): Master Trust Bank of Japan T (4.8), Japan Trustee Services T (3.6),
Mizuho Bank (3.5), Nippon Life Ins (3.4), JFE Steel (3.3), JP Morgan Chase Bank
380055 (2.8), Company’s Kyusaikai Assn (2.0), Sompo Japan Nipponkoa Ins (1.8),
Employees’ S/Holding Assn (1.7), Japan Trustee Services T9 (1.6); foreign
owners (30.0).
No.
of shareholders: 102,452
Listed
on the S/Exchange (s) of: Tokyo, Nagoya
Managements: Shigeru Maruyama,
pres; Kyohei Matsuoka, v pres; Hiroshi Takata, v pres; Joji Iki, s/mgn dir;
Eiji Inoue, s/mgn dir; Yoshinori Kanehana, s/mgn dir; Akio Murakami, s/mgn dir;
Munebiru Ishikawa, s/mgn dir;; Kazuo Hida, s/mgn dir; Shigehiko Kiyama, s/mgn
dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: Kawasaki
Shipyard, Kawasaki Precision Machinery, NIPPI Corp, Kawasaki Thermal
Engineering, Kawasaki Motors Corp, Kawasaki Safety Service Ind, Kawaju Shoji,
other
OPERATION
Activities: Comprehensive
heavy electric machinery mfg & engineering works:
(Sales
breakdown by divisions):
Shipbuilding
(6%): new-building ships, ship repairs, ship remodeling, other;
Railway
Rolling Stock (8%): railway rolling
stocks, civil-engineering machinery & equipment, snow plow, crushing
machines;
Aerospace
(22%): aircraft, spacecraft, other;
Gas
Turbine & Machinery (15%):
jet engines, multi-purpose gas turbines, generating machinery;
Industrial
Plants, Environment & Steel Structure (8%): industrial
machinery & plants, boilers, environmental machinery & equipment, steel
structures;
Others (41%): hydraulic
equipment, fire-preventive equipment, medical equipment, management of welfare
facilities, other.
Overseas
Sales Ratio (58%)
Clients: [Mfrs,
wholesalers, airlines, ministry] Sojitz Corp, Marubeni Corp, Sumitomo Corp,
Itochu Corp, JR West Japan, Kawasaki Machine Systems, Kawasaki Motors Corp USA,
Ministry of Defense, other
No. of accounts:
3,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sojitz Corp, Sumitomo Corp, Sojitz Aerospace, Itochu Corp,
Marubeni Corp, Kawasho Corp, Fujitsu Ltd, Maeda Construction, Itochu Aviation,
Kawaju Finance, Mitsubishi Heavy Ind, Fuji Heavy Ind, Hikari Alfax Inc,
Shimadzu Corp, other.
Payment record: Regular
Location: Business area in
Kobe. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Bank
(Uchisaiwaicho)
SMBC (Kobe)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2015 |
31/03/2014 |
|
INCOME STATEMENT |
|
|||
|
|
Annual Sales |
|
1,486,123 |
1,385,482 |
|
|
Cost of Sales |
1,216,680 |
1,140,293 |
|
|
|
GROSS PROFIT |
269,443 |
245,189 |
|
|
|
Selling & Adm Costs |
182,184 |
172,837 |
|
|
|
OPERATING PROFIT |
87,259 |
72,351 |
|
|
|
Non-Operating P/L |
-2,971 |
-11,746 |
|
|
|
RECURRING PROFIT |
84,288 |
60,605 |
|
|
|
NET PROFIT |
51,639 |
38,601 |
|
|
BALANCE SHEET |
|
|||
|
|
Cash |
|
51,645 |
47,949 |
|
|
Receivables |
421,890 |
415,664 |
|
|
|
Inventory |
498,650 |
458,032 |
|
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
100,877 |
84,109 |
|
|
|
TOTAL CURRENT ASSETS |
1,073,062 |
1,005,754 |
|
|
|
Property & Equipment |
420,554 |
383,912 |
|
|
|
Intangibles |
16,409 |
17,262 |
|
|
|
Investments, Other Fixed Assets |
152,258 |
147,502 |
|
|
|
TOTAL ASSETS |
1,662,283 |
1,554,430 |
|
|
|
Payables |
253,907 |
252,107 |
|
|
|
Short-Term Bank Loans |
122,338 |
190,757 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
448,378 |
352,551 |
|
|
|
TOTAL CURRENT LIABS |
824,623 |
795,415 |
|
|
|
Debentures |
110,000 |
110,000 |
|
|
|
Long-Term Bank Loans |
159,749 |
141,343 |
|
|
|
Reserve for Retirement Allw |
79,272 |
97,048 |
|
|
|
Other Debts |
|
40,682 |
33,938 |
|
|
TOTAL LIABILITIES |
1,214,326 |
1,177,744 |
|
|
|
MINORITY INTERESTS |
|
||
|
|
Common
stock |
104,484 |
104,484 |
|
|
|
Additional
paid-in capital |
54,393 |
54,393 |
|
|
|
Retained
earnings |
253,605 |
217,449 |
|
|
|
Evaluation
p/l on investments/securities |
3,704 |
2,652 |
|
|
|
Others |
31,838 |
(2,249) |
|
|
|
Treasury
stock, at cost |
(67) |
(43) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
447,957 |
376,686 |
|
|
|
TOTAL EQUITIES |
1,662,283 |
1,554,430 |
|
|
CONSOLIDATED CASH FLOWS |
|
|||
|
|
Terms ending: |
31/03/2015 |
31/03/2014 |
|
|
|
Cash
Flows from Operating Activities |
|
127,651 |
151,721 |
|
|
Cash
Flows from Investment Activities |
-67,397 |
-77,559 |
|
|
|
Cash Flows
from Financing Activities |
-57,133 |
-62,505 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
47,721 |
45,431 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
||
|
|
Net
Worth (S/Holders' Equity) |
447,957 |
376,686 |
|
|
|
Current
Ratio (%) |
130.13 |
126.44 |
|
|
|
Net
Worth Ratio (%) |
26.95 |
24.23 |
|
|
|
Recurring
Profit Ratio (%) |
5.67 |
4.37 |
|
|
|
Net
Profit Ratio (%) |
3.47 |
2.79 |
|
|
|
|
Return
On Equity (%) |
11.53 |
10.25 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.23 |
|
|
1 |
Rs.102.20 |
|
Euro |
1 |
Rs.72.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
|
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.